Dun and Bradstreet Rating

Did you know you’re Dun and Bradstreet rating plays a significant role in the amount of financing, interest rate, and level of terms a creditor will extend to you?

Your company’s rating with Dun and Bradstreet is determined by the company information you provide and data gathered from lenders, vendors, suppliers, and other trade accounts.

Here’s a quick recap on why getting listed with DNB is so important.

Dun and Bradstreet is the leading provider of business information for over 165 years and it contains more than 130 million business records. Getting your company listed with this bureau is a must since it’s the most widely used risk assessment tool used by suppliers and creditors today.

Now if you’re not familiar with its rating system; Paydex, it’s basically a unique dollar-weighted numerical indicator of how your company pays its bills with scores ranging from 1-100.

Suppliers and lenders rely on Paydex scores to help them determine the risk level of a company. An 80+ paydex is considered a solid rating and enables you to obtain favorable terms with potential creditors.

Here are five ways to improve your Dun and Bradstreet Rating:

1. Supply a complete business profile – When applying for your Dun and Bradstreet ID Number furnish all the required information on your company. You can also update your company info via iUpdate at no cost.
2. Establish payment history – Establish a good combination of credit types reporting on your file along with a track record of consistent payments.
3. Control debt to credit utilization – Keep debt-to-credit limit ratios at 50% or below in order to avoid your company appearing overextended.
4. Pay Better Than On Time – Paying your invoices 10, 15 or even 20 days ahead of the due date can classify your business as one that pays ‘better than terms’. This looks extremely favorable on your profile and can increase your Dun and Bradstreet rating significantly.
5. Add trade references – If you have existing references that do not report to DNB consider adding them to your file by enrolling in one of DNB’s CreditBuilderPrograms.

If you’re not listed with DNB make it a priority to do so as soon as possible. Start building your company’s credit profile today so you can obtain the financing you need without relying on your personal credit.

With a strong Dun and Bradstreet rating you can have the confidence and security knowing that anytime a potential investor, partner, lender or supplier views your profile they will have a positive outlook on your company.

Looking to build your business credit ratings? Become a member of my Business Credit Insiders Circle and gain access to a proven step-by-step business credit building system. A system that provides you access to vendor credit, fleet cards, business credit cards with and without a PG, and funding sources. Submit your name and email below for details and receive a free business credit building audio seminar ($597 value) =>

About the author

Marco Carbajo is a business credit expert, author, speaker, and founder of the Business Credit Insiders Circle. He is a business credit blogger for AllBusiness, a subsidiary of Dun and Bradstreet and author of “Eight Steps to Ultimate Business Credit” and “How to Build Business Credit with No Personal Guarantee.” His articles and blogs have also been featured in the SBA Community, American Express Small Business, Business Week, The Washington Post, The San Francisco Tribune, Scotsman Guide, Alltop, Entrepreneur Connect, and Active Rain.